Day: February 16, 2021

           NATURE AND STAGES OF INVESTMENT APPRAISAL Nature Replacement Investment Investment for Expansion Product Improvement/Cost Reduction New Ventures Strategic Investment – may satisfy overall objectives but might not satisfy normal financial criteria. Statutory Requirements/Employee or Community Welfare – may not Read More …

INTRODUCTION Corporate Governance can be defined as the system by which organizations are directed and controlled. BEST PRACTICE  Financial aspects of corporate governance have introduced a “Code of Best Practice” Some of the main recommendations are: The roles of chairman Read More …

INTRODUCTION It is often assumed that the single objective of commercial entities is: To Maximise the Value of the Firm Or To Maximise the Wealth of the Shareholders In reality, firms have multiple, and often conflicting, objectives and will seek Read More …

SOCIAL AND ENVIRONMENTAL ACCOUNTING AND REPORTING Traditionally, accounting and reporting has been as an exercise based on a set of ‘financial numbers’, composed of for example income and expenditure, asset valuations, liabilities owed and capital. However in recent decades a Read More …

INTRODUCTION A share-based payment is one in which the entity receives or requires goods and services in return for equity instruments of the entity or incurs a liability for amounts that are based on the prices of the entity’s shares Read More …

OBJECTIVE The objective of IAS 24 Related Party Disclosures is to ensure that an entity’s financial statements contain sufficient disclosures to highlight the possibility that the entity’s financial position and / or performance may have been affected by: The existence Read More …

INTRODUCTION IAS 19 outlines the accounting treatment of various benefits provided to employees by the employer.  All benefits provided to employees, whether long-term or short-term in nature, must be accounted for to ensure that the financial statements of the entity Read More …

PURCHASE OF OWN SHARES Where a limited company is permitted  to purchase its own shares it must either cancel them or sell them within 2 years If the purchased shares are cancelled, the purchase must be financed by a fresh Read More …

INTRODUCTION Large companies can often operate within several different business sectors and/or in different geographical locations. Each of these sectors/locations can involve risks and opportunities that can differ significantly from each other. For example, while an entity’s toy division might Read More …

INTRODUCTION Agriculture is fundamentally different from other types of business.  Instead of wearing out or being consumed over time, many agricultural assets actually grow. It can be argued that depreciation is irrelevant in this situation. Hence, biological assets are measured Read More …